New Delhi, 11-03-2025: The industrial landscape of Jammu and Kashmir is at a critical juncture, with an urgent need for expansion and modernization to catalyze employment generation and economic growth. Recognizing the strategic importance of industrial development in fostering self-reliance and sustainable livelihoods, the Department-Related Parliamentary Standing Committee on Home Affairs has underscored the necessity of enhancing the region’s industrial infrastructure. In its latest report tabled in Parliament, the Committee has emphasized the role of robust infrastructure in attracting investments, fostering entrepreneurship, and addressing the persistent issue of unemployment in the Union Territory. To ensure a forward-looking approach, the Committee has also urged the administration to formulate a comprehensive roadmap that positions Jammu and Kashmir as a world-class tourism destination while accelerating the completion of ongoing projects.
The report provides a detailed account of the significant investments being made to strengthen Jammu and Kashmir’s infrastructure, which serves as the backbone of industrial and economic development. An investment of ₹61,528 crore has been allocated to road connectivity projects, with the execution of five National Highways, two Ring Roads, and the Delhi-Amritsar-Katra Expressway. Furthermore, 99% of eligible rural habitations now have connectivity, significantly improving access to markets and employment hubs. The near-completion of the Jammu-Srinagar National Highway is expected to drastically reduce travel time, while the extension of railway services to the Kashmir Valley—developed at a cost of ₹37,000 crore—marks a major milestone in the region’s transportation network. Additionally, enhanced air connectivity, including the operationalization of evening flights and the doubling of air traffic at Srinagar Airport over the past five years, further integrates Jammu and Kashmir with national and international markets.
Parallel to transport infrastructure, the power sector is witnessing substantial advancements that are set to support industrial growth. The report highlights that hydropower generation capacity in Jammu and Kashmir will be doubled by 2026 with the addition of four new projects generating 3,014 MW. Meanwhile, transmission capacity has increased by 50% through the completion of 28 projects, and distribution capacity has seen a 40% enhancement with 194 completed projects. The Committee has commended these efforts, noting that improved power supply is a crucial factor in attracting industrial investments and supporting business expansion.
Despite these commendable developments, the Committee has drawn attention to the persistent issue of unemployment in Jammu and Kashmir, which remains significantly higher than the national average. According to the Periodic Labour Force Survey 2023-24, the overall unemployment rate for individuals aged 15 years and above in Jammu and Kashmir stands at 6.1%, compared to the national average of 3.2%. This disparity underscores the need for targeted interventions to generate employment opportunities and integrate the local workforce into the expanding economic ecosystem.
A key recommendation of the Committee is to enhance industrial infrastructure by prioritizing investments in transportation, power supply, and digital connectivity. Strengthening these sectors will make the region more attractive to investors and businesses, fostering industrial growth and job creation. The Committee has also stressed the importance of fostering entrepreneurship as a long-term solution to unemployment. By offering incentives such as subsidized loans and business-friendly policies, the administration can empower local entrepreneurs to establish enterprises that create employment and contribute to economic diversification.
The tourism and hospitality sector has emerged as a critical driver of Jammu and Kashmir’s economy, recording an unprecedented increase in tourist footfall in 2024. The Committee has acknowledged the administration’s initiatives to boost tourism, including the submission of nine new tourist destination development proposals to the Department of Economic Affairs for multilateral funding. The operationalization of the Sonamarg tunnel has facilitated year-round access to the scenic destination, enhancing its tourism potential. Additionally, substantial progress has been made in environmental conservation, with one-third of Dal Lake rejuvenated and 6.5 square kilometers cleared of lilies.
Tourism, beyond its economic contributions, plays a vital role in regional and rural development, supporting small businesses, artisans, and service providers. Recognizing this, the Committee has called for a well-defined strategy to elevate Jammu and Kashmir’s status as a world-class tourism destination. The roadmap should focus on enhancing the tourist experience, promoting cultural heritage, and ensuring sustainable development. By leveraging public-private partnerships, the administration can attract private investments that contribute to infrastructure development and employment generation in the tourism sector.
Handicrafts, another cornerstone of Jammu and Kashmir’s economy, have been identified as a high-potential sector for employment generation. The Committee has recommended a comprehensive approach to revitalize the handicraft industry, including securing Geographical Indication (GI) tags for traditional crafts. GI tagging not only preserves cultural heritage but also enhances market value, enabling artisans to secure better prices for their products. The administration must ensure robust marketing and branding initiatives that promote locally produced handicrafts on national and international platforms.
The Committee has further emphasized the need for skill development initiatives tailored to the evolving job market. Equipping the youth with industry-relevant skills, particularly in sectors such as information technology, renewable energy, and manufacturing, will enhance their employability and enable them to compete in a dynamic economic landscape. Strengthening vocational training institutes, forging partnerships with industries for apprenticeship programs, and integrating modern curricula in educational institutions can create a workforce that is both skilled and adaptable.
Addressing the employment crisis in Jammu and Kashmir requires a multi-pronged approach that combines industrial expansion, infrastructure development, tourism promotion, and entrepreneurship support. While significant progress has been made, the administration must ensure that economic growth translates into tangible employment opportunities for the local population. This entails fostering a business-friendly environment, expediting policy implementation, and ensuring transparency in governance.
The Parliamentary Panel’s recommendations present a well-rounded framework for addressing the challenges and unlocking Jammu and Kashmir’s economic potential. However, effective implementation is key to achieving the desired outcomes. The administration must establish a robust monitoring mechanism to track the progress of ongoing projects and address bottlenecks in a timely manner. Collaboration between government bodies, industry stakeholders, and civil society will be essential in driving sustainable development and inclusive economic growth.